Megaprojects Observed: The Extractivist Hiding Hand at Resource Peripheries

Mining operations are often presented to society as comprehensive megaprojects for development. But is that truly the case? How are their environmental impacts anticipated and regulated? Located in the impoverished southern Andes of Peru, the Las Bambas mine accounts for about 2% of global copper production. In contrast to Albert Hirschman’s classic theory of the Hiding Hand in economic development, this mine represents a project where initial ignorance of risks is not necessarily counterbalanced by creative solutions from state officials later on. We examine the processes of environmental regulation and assess the creativity in public policy. The significant alterations to the project and its Environmental Impact Assessment, made without mandatory citizen participation, have contributed to growing social discontent. An Extractivist Hiding Hand ensures the development of resources but little else. In this context, creativity and state capacity are deployed to conceal environmental injustices.